How Heating Oil Is Priced

Many factors beyond the control of oil dealers influence the price consumers pay for fuel oil. They include crude oil prices, refining capacity, transportation costs and seasonal temperatures.

The retail price customers ultimately pay for fuel oil is determined in part by the level of service the dealer provides. Companies with service plans, 24-hour service for emergencies, payment plans and equipment financing typically command a higher fuel price than companies that only deliver oil. Many consumers prefer to do business with a full service dealer that backs up their product with quality equipment service.